GameStop 2005 Annual Report Download - page 111

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GAMESTOP CORP.
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Fiscal Year Ended January 28, 2006
Issuers and
Guarantor
Subsidiaries
January 28,
2006
Non-Guarantor
Subsidiaries
January 28,
2006 Eliminations
Consolidated
January 28,
2006
(Amounts in thousands)
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,490 $ 9,294 $— $ 100,784
Adjustments to reconcile net earnings to net cash flows
provided by operating activities:
Depreciation and amortization (including amounts in
cost of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,932 7,727 — 66,659
Provision for inventory reserves. . . . . . . . . . . . . . . . . 24,726 377 — 25,103
Amortization of loan cost . . . . . . . . . . . . . . . . . . . . . 1,229 — — 1,229
Amortization of original issue discount on senior
notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 — — 316
Restricted stock expense . . . . . . . . . . . . . . . . . . . . . . 347 — — 347
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,528) 312 — (8,216)
Tax benefit realized from exercise of stock options by
employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,308 — — 12,308
Loss on disposal and impairment of property and
equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,648 — — 11,648
Increase in deferred rent and other long-term liabilities
for scheduled rent increases in long-term leases . . . . 3,216 453 — 3,669
Increase in liability to landlords for tenant allowances,
net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 936 (734) — 202
Decrease in value of foreign exchange contracts . . . . . (2,421) — — (2,421)
Changes in operating assets and liabilities, net of
business acquired
Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . (6,728) (3,267) — (9,995)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . (75,311) (16,052) — (91,363)
Prepaid expenses and other current assets . . . . . . . . 19,402 82 — 19,484
Prepaid taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,172 (4,562) — 13,610
Accounts payable and accrued liabilities . . . . . . . . . 89,675 58,379 — 148,054
Net cash flows provided by operating activities . . . . 239,409 52,009 — 291,418
Cash flows from investing activities:
Purchase of property and equipment . . . . . . . . . . . . . . . (93,419) (17,277) — (110,696)
Merger with Electronics Boutique, net of cash acquired . . (920,504) 34,388 — (886,116)
Net cash flows used in investing activities . . . . . . . . . . . (1,013,923) 17,111 — (996,812)
Cash flows from financing activities:
Issuance of senior notes payable relating to Electronics
Boutique merger, net of discount . . . . . . . . . . . . . . . . 641,472 — — 641,472
Issuance of senior floating rate notes payable relating to
Electronics Boutique merger . . . . . . . . . . . . . . . . . . . 300,000 — — 300,000
Issuance of shares relating to employee stock options . . . 20,800 — — 20,800
Net increase in other noncurrent assets and deferred
financing fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14,450) 984 — (13,466)
Payment of debt relating to repurchase of Class B
shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,173) — — (12,173)
Payment of debt relating to pre-existing Electronics
Boutique debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (956) — (956)
Net cash flows provided by (used in) financing
activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 935,649 28 — 935,677
Exchange rate effect on cash and cash equivalents . . . . . . . — 318 — 318
Net decrease in cash and cash equivalents . . . . . . . . . . . . . 161,135 69,466 — 230,601
Cash and cash equivalents at beginning of period . . . . . . . . 167,788 3,204 — 170,992
Cash and cash equivalents at end of period . . . . . . . . . . . . 328,923 72,670 — 401,593
102
GAMESTOP CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)